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Trade in FOREX MARKET AND EARN HUGE PROFIT FROM SURE FOREX SIGNALS
Forex market has got the maximum
potential for earning for any investor. The daily turnover of more than US$3
trillion, high leverage rate and stable Forex market make the Forex investment
so profitable. But like any investment, you need to have a comprehensive idea
of the Forex market, have competence in predicting the ups and down of Forex
market and of course take the right opportunities of trading to earn money from
Forex trading. Here we are providing an overview of Forex trading that will
help you to earn money with Forex trading.
Forex trading is all about buying
one currency with another. The basic principle for making money at the Forex
market is to buy the currency at lower rate and selling that at higher rate. Or
you can do the trade other way as well, that by selling the currency at higher
rate and then buying it back at a lower rate. At Forex trading you are offered
the price of the currency in respect to other currency and the quote at the
Forex market is presented in the combination of these two currencies. Generally
the first currency of the Forex quote is the base currency and the other is the
trade currency. Generally it is the rate of the base currency on which the
profit or loss is determined and the trading currency is the currency in which
the investment is made and profit is obtained. Generally in a Forex quote the
base currency is considered as one unit and the price of the trade currency for
that 1 unit of base currency is given in the Forex quote. Here we are
presenting an example that will help you to understand precisely how you can
make money at the Forex market.
For example your speculation says
that the Euro to US Dollar rate will increase in the Forex market and you are
keen to get some profit from this trade and you have US$ 2000 in your account
as deposit. But as the standard practice of high leverage in the Forex market
(100:1) you can take a trade of as much as US$ 200,000 with your deposit of US$
2000. Now for instance let us assume that the current quote of EURUSD is
1.2750. With the deposit you have you can invest in as much 150,000 Euro as the
price of that much Euro in US$ will be 150,000 x 1.2750 = 191,250. Now
according to your speculation if the rate of Euro rises to 1.2850 in respect to
USD, the value of 150,000 Euro will be 150,000 x 1.2850 = 192,750 USD. So you
will make a profit of 192,750 – 191, 250 = 1500 US$. So with a minimum deposit
of USD 2000 you can make a profit of 1500USD that is about 75% of your actual
deposit or investment. That too this high profit percentage is achieved with a
minimum rise of .8% of the base currency.
Similarly if you have a
speculation that says the rate of Euro will go down in comparison with USD, you
can short sell the Euro at the Forex market. That means you can sell the Euro
at a higher rate and then when the rate of Euro goes down, you can buy back the
same quantity of Euro at lower rate to close the position and make your profit
from the trade.
These are of course the simplest
examples of Forex trading and there are so many other factors that can come
into play when you are actually trading at the Forex market. But one thing
remains constant – that is if you can choose the right time and the take right
trading decision, Forex market possibly has the maximum profit potential. But
to ensure that you get optimum benefit from the Forex trading you have to keep
close watch on the market trend so that you do not miss any investment
opportunity and make the best of the huge profit potential of the Forex market.
To help you keep watch on the Global Forex and the up and down trend of the
currencies, the automated Forex trading software is surely an effective medium
and you gain from these systems. These systems help to determine the trend of
the market as well as do the Forex trading seamlessly.